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Chevron struck a joint oil exploration deal with CNOOC covering the South China Sea. Under the terms, Chevron will perform exploration in more than 2,233 square miles and will have 100% interest in any discoveries. "Exploration of these blocks builds on our strategy to grow our business across the Asia Pacific region, where we are developing LNG, deepwater, shale and sour gas resources," said George Kirkland, Chevron's vice chairman and executive vice president of upstream and gas.

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Chevron's Gorgon liquefied natural gas project in Australia is on track for a late 2014 completion, said George Kirkland, vice chairman and executive vice president of upstream and gas. Rough weather, increasing labor costs and the surging Australian dollar have boosted Gorgon's costs and caused delays, but the company is studying whether changes can be made to keep the project on track. "We still think we're on the late-2014 schedule," he said.

A new kind of drillship, contracted by Chevron, is about to begin drilling in the Gulf of Mexico, the company said. The ship is equipped with a dual-gradient system that allows oil and natural gas firms to quickly recognize and respond to well-bore pressure changes. Dual-gradient drilling "has the potential to change the way deepwater wells are drilled," said George Kirkland, Chevron's vice chairman and executive vice president of upstream and gas.

Active drilling conditions in the Gulf of Mexico could set a "new normal" for the region, said George Kirkland, Chevron's vice chairman and executive vice president of upstream and gas. His statement comes as tighter safety rules imposed after the BP oil spill continue to slow drilling-permit procedures. Chevron and other oil majors could benefit from this slowdown because it would curb service costs and lessen competition, bank analysts said.

Chevron and its partners have struck oil in the Bilondo Marine 2 and 3 wells off the coast of the Republic of the Congo. "These discoveries further demonstrate the potential of West Africa where Chevron has made significant investments to develop new energy resources," said George Kirkland, Chevron's vice chairman.

Chevron's production rose by 7% last year despite the economic downturn and tough market conditions, and it will continue to increase in the coming years, CEO John Watson said. George Kirkland, the executive vice president of global upstream and gas, attributed that future growth to the company's Gorgon and Wheatstone natural gas ventures in Australia. The company intends to start production in 10 capital projects during the next three years, Kirkland added.